Manufacturers Hike Module Prices 15-50% Ahead of Subsidy Cut
China's largest solar manufacturers, including JinkoSolar, LONGi Green Energy, and Trina Solar, have raised photovoltaic module prices significantly in late March. Mainstream components saw price increases of 15% to 20%, while some high-power products jumped by as much as 50%. The hikes directly precede a major policy shift from Beijing, which will cancel the value-added tax (VAT) export rebate for PV products starting April 1, 2026. This move follows an earlier reduction of the rebate from 13% to 9% in December, signaling a clear governmental push to withdraw financial support from the sector.
The price increases are a direct result of the policy change, compounded by rising costs for raw materials like silver. According to Shanghai Metals Market analyst Zheng Tianhong, the policy adjustment served as the critical trigger for the price correction, forcing exporters to account for the lost subsidy in their pricing.
Beijing Moves to End Destructive Domestic Price War
The withdrawal of tax incentives is a strategic intervention by Beijing to resolve a period of intense and damaging domestic competition. Fierce price wars among Chinese producers had pushed module prices to a historic low of $0.07 per watt in 2025, down from $0.25 per watt in 2022. While this fueled global solar adoption, it created a spiral of low-price, low-quality competition that resulted in heavy financial losses for many manufacturers and triggered anti-subsidy investigations abroad.
Industry leaders have framed the policy as a necessary step to restore market stability. Zhong Baoshen, Chairman of LONGi Green Energy, stated that the intense competition was stifling innovation. By removing the tax dividend that incentivized high-volume, low-margin exports, authorities aim to force a consolidation around healthier, more profitable companies focused on technological advancement rather than pure price competition.
Global Solar Costs to Rise as Era of Cheap Panels Ends
The policy shift in China, the world's dominant producer of solar components, is set to establish a new, higher price floor for the global market. The impact will be felt across international supply chains, particularly in regions like Africa and Europe that rely heavily on Chinese imports. For instance, the growing market for small-scale 'balcony power plants' in Germany is expected to see component prices climb 15% to 20%.
This marks a structural change in the global solar market, ending a period of rapid expansion built on subsidized Chinese exports. The adjustment is expected to be gradual but definitive, forcing international project developers to recalibrate their cost assumptions.
The entire recent solar boom was built on artificially cheap Chinese pricing. That era is now ending.
— John van Zuylen, CEO of the Africa Solar Industry Association.
